Lumentum (NASDAQ:LITE) Stock Price Up 8.2% – Time to Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) shares rose 8.2% during mid-day trading on Monday. The company traded as high as $840.47 and last traded at $818.10. Approximately 5,998,195 shares were traded during mid-day trading, an increase of 10% from the average session volume of 5,472,200 shares. The stock had previously closed at $756.17.

Analyst Ratings Changes

A number of research analysts have recently weighed in on LITE shares. JPMorgan Chase & Co. lifted their price target on Lumentum from $1,165.00 to $1,280.00 and gave the company an “overweight” rating in a report on Wednesday, August 12th. Mizuho increased their price objective on Lumentum from $1,100.00 to $1,140.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 12th. Wolfe Research restated an “outperform” rating on shares of Lumentum in a research report on Friday, August 21st. Needham & Company LLC reaffirmed a “buy” rating and set a $1,040.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Finally, Bank of America lowered their target price on Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 12th. Sixteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $1,080.83.

Lumentum Trading Up 8.2%

The company has a 50-day moving average price of $924.34 and a 200-day moving average price of $878.49. The company has a market capitalization of $74.10 billion, a price-to-earnings ratio of -9.95 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating the consensus estimate of $2.97 by $0.26. The firm had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business’s quarterly revenue was up 109.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Research analysts predict that Lumentum Holdings Inc. will post 19.79 EPS for the current fiscal year.

Insider Transactions at Lumentum

In related news, CFO Wajid Ali sold 24,542 shares of the business’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the transaction, the chief financial officer directly owned 75,074 shares in the company, valued at $78,715,089. The trade was a 24.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of the company’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total value of $290,115.00. Following the completion of the transaction, the insider owned 108,320 shares of the company’s stock, valued at $102,362,400. The trade was a 0.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 94,496 shares of company stock worth $85,978,498. 0.28% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Red Spruce Capital LLC lifted its position in Lumentum by 0.4% during the third quarter. Red Spruce Capital LLC now owns 3,200 shares of the technology company’s stock valued at $3,108,000 after purchasing an additional 12 shares in the last quarter. CYBER HORNET ETFs LLC raised its stake in shares of Lumentum by 7.2% in the second quarter. CYBER HORNET ETFs LLC now owns 209 shares of the technology company’s stock worth $179,000 after buying an additional 14 shares during the period. Hilltop National Bank raised its stake in shares of Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock worth $61,000 after buying an additional 15 shares during the period. Sachetta LLC lifted its position in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after buying an additional 19 shares in the last quarter. Finally, Kieckhefer Group LLC lifted its position in shares of Lumentum by 0.8% during the 3rd quarter. Kieckhefer Group LLC now owns 3,191 shares of the technology company’s stock valued at $3,099,000 after buying an additional 25 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

About Lumentum

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.